Angola Sells Seized Standard Bank Angola Shares: $228M From Ex-Tycoon's Assets

• Angola plans to sell a 34% stake in Standard Bank de Angola SA, aiming to raise up to $228 million.
• These shares were part of a 49% stake seized from convicted former tycoon Carlos Sao Vicente in 2020.
• Standard Bank Group can purchase 24% of the shares, with the remaining 10% offered to the public via BODIVA from September 11-25.
• This sale is a key part of Angola's 2019-2026 privatization program, which includes divesting nine other state assets.

This particular sale of Standard Bank Angola shares is a pivotal component of Angola's broader 2019-2026 privatization program, a comprehensive initiative designed to modernize the national economy and attract crucial private investment.

Angola is moving forward with a substantial state asset disposal, aiming to generate up to 208.5 billion kwanzas, equivalent to approximately $228 million, through the sale of a 34% interest in Standard Bank de Angola SA. This significant transaction involves shares that were previously under the ownership of a prominent, now incarcerated, former insurance magnate. The Agency for the Management of State Assets and Holdings, known as IGAPE, has outlined the process for this sale.

The divestment strategy includes a preferential offer to South Africa-based Standard Bank Group, which currently holds a 51% majority stake in the Angolan unit. The group has been granted the option to acquire an additional 24% of the shares at a price of 41,220 kwanzas per share. The remaining 10% of the stake is slated for public offering on the BODIVA stock exchange, with the sale period scheduled from September 11 to September 25. Public investors will have the opportunity to purchase these shares within a price range of 41,220 kwanzas to 50,000 kwanzas, with trading anticipated to commence on September 30.

The shares now being offered for sale originate from a 49% stake in Standard Bank Angola that the Angolan government confiscated in 2020. This seizure targeted assets belonging to Carlos Sao Vicente, the aforementioned former insurance tycoon. His assets were forfeited following a legal process that culminated in his conviction on serious charges, including embezzlement and tax fraud. Mr. Sao Vicente is currently serving a nine-year prison sentence, underscoring the Angolan state's commitment to asset recovery and combating financial illicit activities. This action highlights the legal framework supporting the Angolan state's ability to reclaim assets deemed to have been acquired through illegal means.

This particular sale of Standard Bank Angola shares is a pivotal component of Angola's broader 2019-2026 privatization program, a comprehensive initiative designed to modernize the national economy and attract crucial private investment. The program is a cornerstone of President João Lourenço’s reform agenda, signaling a strategic shift towards reducing state involvement in key sectors and fostering a more dynamic market environment. The IGAPE Chairman, Álvaro Fernão, indicated in July that the disposal of the Standard Bank stake would be followed by further state asset disposals, specifically mentioning the sale of the state’s 1.4% holding in Banco Caixa Geral Angola SA.

Beyond these financial sector divestments, Angola has plans to sell stakes in nine additional assets before the upcoming elections next year. These ongoing sales are intended to complete the ambitious privatization program, reflecting a sustained effort by the Angolan government to streamline its portfolio of state-owned enterprises and encourage greater private sector participation. The overarching goal is to enhance economic efficiency and create new opportunities for both domestic and international investors within the Angolan market.

This development signals Angola's continued commitment to its privatization program and asset recovery, potentially creating investment opportunities in the financial sector. Lawyers should advise clients on due diligence requirements for participating in such state-led asset disposals and monitor regulatory changes impacting foreign investment in Angolan financial institutions.

Source: Original reporting via Bloomberg